950806

EPB inertia to blame

for decline in export

of leather garments

RECORDER REPORT

KARACHI: Leather garment exporters have described the EPB inquiry into the causes of decline in leather garments exports as 'crying over spilt milk'. They said that they had warned the Export Promotion Bureau about decline in exports as long back as September 1994 but no measures were taken to check the slide.

A leading exporter Fawad Ijaz Khan maintained that the unchecked export of leather and the lack of incentives to the garments exporters have led to the 18 percent decline in leather garments' exports.

Commenting of the EPB letter to the exporters asking for reason for the decline he expressed regret over the EPB behaviour which always wakes up after the loss has occurred instead of adopting pre-emptive steps to check the negative growth.

Fawad Ijaz said that he has been constantly bringing to the notice of the Minister of Commerce and top brass of the Export Promotion Bureau the declining trends in export of leather garments in meetings during September 1994 to June 1995 but to no avail.

He suggested that the EPB should monitor monthly position of exports and take necessary measures to check decline in exports of different items instead of coming to senses with the finalisation of annual export figures.

Fawad Ijaz said that it is for the first time in 10 years that the export of leather garments has decreased and has fallen to Rs 270 million in 1994-95 against Rs 338 million in 1993-94.

The leather exporters, who have formed a separate platform Leather Garments Manufacturers and Exporters Forum --- to press for their demands are demanding duty free import of accessories, export re-finance on concessional rates and a check on export of leather.

Fawad Ijaz Khan praised the Collectorate of Customs (Exports) for the arrangements made for payment of duty drawback to the exporters which has improved their liquidity position.

After a meeting with the Collector of Customs (Exports) Mir Fawad, he said that the Collectorate has cleared backlog of duty drawback claims and all claims filed until June 1995 have been paid to the exporters.